19 jobs saved as gym group sold out of administration

A company which operates fitness gyms in Rotherham and Stafford has been sold out of administration, saving 19 jobs.

Yorkshire-based insolvency specialists, Wilson Field, have been appointed as administrators of a I-Motion Fitness. It provided premium facilities and state of the art equipment at their two gyms and offered more than 200 fitness classes per week.

The business of the company has been transferred to two new companies – I-Motion (Rotherham) Limited and I-Motion (Stafford) Limited, both companies being related to one another and I-Motion Fitness Limited by common ownership and directorship. The staff have been transferred under TUPE – The Transfer of Undertakings (Protection of Employment) Regulations 2006.

I-Motion Fitness originally purchased the businesses out of administration and inherited some overheads and commitments, stretching cash flow from day one. Financial difficulties resulted in a Rates Liability Order on the Stafford gym and the threat of bailiff action. The directors then approached Wilson Field.

Kelly Burton and Lisa Hogg from licensed insolvency specialists Wilson Field were appointed joint administrators.

Burton said: “These gyms provided classes in Pilates, High Intensity Interval Training, Spin and employed around 19 staff. We have worked closely with the director, staff and other related parties to achieve the best outcome for all concerned parties. This in turn was dependant on keeping the businesses trading to preserve ongoing customer loyalty to maintain the goodwill value of the gyms”.

Burton and her team also enlisted the help of Yorkshire-based firm Clarion Solicitors to provide legal advice on the transfer along with RICS registered valuation agents Charterfields.

Burton added: “It is always good to see businesses survive after facing difficulties. As well as saving 19 jobs under TUPE, this process mitigated preferential claims for wages, holiday pay, redundancy, etc., estimated at almost £20,000 – which improved the return to creditors. In this case, with the same team of staff, the directors are looking forward to providing the same high quality of service to their regular customers and to new members. Without that cooperation of all parties involved, the outcome could have been very different.”

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